Gifting

The federal estate and gift tax is a unified federal tax system that taxes the transfer of wealth during a person's lifetime or after his/her death.

Everyone is entitled to transfer a certain amount that will not be subject to federal transfer taxes. The so-called Federal Exemption Equivalent, along with annual gifting limits, determine the 'corridor' that taxpayers have to work within. Those limits will be changing annually until 2010, and are scheduled to return to 2001 rates the year after that.

For affluent clients, that corridor can leave little room to maneuver. More sophisticated planning is needed in order to achieve even modest goals, such as leaving the largest amount to heirs and other family members. Add to that a set of charitable goals and objectives and the planning process can become quite complex. Gifting strategies, therefore, play a crucial role in estate and wealth planning.

There are steps you can take now to minimize and, in some cases, even eliminate transfer taxes, while effectively achieving your gifting objectives. Contact us for further information or to arrange a consultation.